Here’s How You Should Be Comparing Your Car Insurance

While it may seem tempting just to renew your car insurance policy with the same insurance provider every year, it’s not always the best decision . You might be missing out on a better deal or a more reliable insurance company. No two insurance policies are the same, and what works for your neighbour may not be the right choice for you. It’s best to compare car insurance before you renew to make sure your current policy offers you all the benefits you want and need  -here’s how!

Contact a few different companies

We don’t always welcome change. After all, if you feel comfortable with something, why would you look elsewhere? But this doesn’t work well when dealing with insurance policies. Before you sign on the dotted line, it’s best to speak with representatives from at least three different insurance companies.

What do you want to know? In addition to pricing, you should find out what benefits they offer their policyholders. Some insurance companies provide added features that may protect you in the future. You should also read what current customers have to say. Is the company difficult to reach after an accident? Do they drag their feet when it comes a time to process a claim? A company that provides outstanding customer service is more likely to help you after an accident. The more you know about a few companies, the easier it will be to settle on one.

Get 3 different policy quotes

At the end of the day, you have to pay your insurance premiums. Since nearly two-thirds of drivers in Singapore renew their policy without shopping around, companies often take advantage of this. They may increase your premiums without being fully transparent. To prevent this from happening, always seek out car insurance quotes from at least three different agencies before deciding to renew.

You could end up finding a better deal. Many insurance companies offer discounts to good drivers, and if your record is clear, you may get a better deal somewhere else. Of course, you could discover you were already paying the lowest premiums possible. Even if you don’t end up saving money, at least you’ll know you’re not overpaying.

Ask about coverage options

Before you renew your policy, take a long, hard look at what it offers. Do you have all the coverage you need? You may even discover you’re paying extra for options you no longer need. As your car age increases, the insurance needs are likely to change. That’s why it’s always wise to research different features before you settle on an insurance policy.

Different insurance companies offer various perks. When shopping around for car insurance quotes, don’t hesitate to ask what makes them better than the others. Look for a company that allows you to pick and choose the coverage options you want. A customisable policy will not only save you money, but it will also ensure you’re adequately protected if you ever need to file a claim.

Select the right type of insurance

Many Singaporeans don’t realise they have options when it comes to car insurance. However, you can actually choose from three different types of coverage: Comprehensive, Third-party only (TPO), and Third-party, fire and theft (TPFT). The kind of policy you need may depend on your budget, age of your car, and driving habits.

Comprehensive insurance is the most well-known. That’s because it’s the most popular type in Singapore. As the name suggests, this type of insurance covers almost everything, including your own car repairs after an accident. Since it includes more coverage, comprehensive insurance also comes with higher premiums.

Third-party only (TPO) insurance is the most inexpensive type of coverage in Singapore. It’s also the minimum requirement by law. If you’re in an accident, TPO only covers damages that the other parties incur. You’ll have to pay in full for damages to your own vehicle. Usually, only people with older cars choose this type of policy.

Third-party, fire and theft (TPFT) car insurance is a variant on TPO coverage. While it only covers damages to other parties, the policy will pay for theft or fire damage to your own vehicle. Although it does offer more protection, it’s also only recommended for those with older cars.

Become a car insurance expert

Taking the time to compare car insurance may save you a lot of money. Never assume you’re getting the best deal until you check out what else is available. It may surprise you to find out that you can get a better price from another company.

At  DirectAsia, we make it easy to buy a car insurance policy that meets your needs. With customisable plans, you can pick and choose the coverage that fits your driving lifestyle. So contact us today to request a quote on your next car insurance policy.

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